Total Hammer Price Up 99% but Lots Down 11%... Art Market Focused on Ultra-High-Priced Works

Korea Art Authentication Research Center Releases "2026 First Half Art Market Analysis Report"

Nara and Kusama's Two Works Account for 23% of First Half's Total Hammer Price

Online Auctions Decline, Gallery Restructuring Spreads

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Two artworks, each valued at around 10 billion KRW, drove the performance of the domestic art auction market in the first half of the year. The total auction sales amount nearly doubled compared to a year ago, but the number of auctioned pieces decreased. Capital was concentrated in a handful of overseas blue-chip artists, major auction houses, and offline auctions. This trend is seen as selectively focusing on ultra-high-priced artworks rather than a true market recovery.

Yoshitomo Nara's Work 'Nothing About It' Seoul Auction

According to the "2026 First Half Art Market Analysis Report" published by the corporate-affiliated research institute of the Korea Art Authentication & Appraisal Institute (KAAAI) on July 28, the total sales of the seven major domestic auction houses reached 110.8 billion KRW in the first half of this year. This represents a 99.05% increase from 55.7 billion KRW during the same period last year. However, the number of works put up for auction dropped by 11.03%, from 9,607 to 8,547. Rather than an increase in transaction volume, it was a few high-priced pieces that dramatically boosted the total sales figure.

The deciding factor was the Seoul Auction held in March. Yoshitomo Nara’s “Nothing about it” was sold for 15 billion KRW, setting a new record for the highest price ever at a Korean art auction. At the same auction, Yayoi Kusama's "Pumpkin" fetched 10.45 billion KRW. The combined price for these two works was 25.45 billion KRW, accounting for 23.0% of the total auction sales in the first half. This marks the first time in the domestic auction market that two works priced over 10 billion KRW were sold simultaneously in a single auction.

Difficult to Conclude 'Recovery' Without the Two Billion-Won Sales

At first glance, the numbers suggest a boom. However, the underlying picture is different. Of the 55.1 billion KRW increase in auction sales in the first half of this year, the closing prices of the two pieces by Yoshitomo Nara and Yayoi Kusama accounted for 46.2%. The report indicated that interpreting the 99.05% growth rate as a broad market recovery would be misleading.

The concentration on high-end works was also notable. Artworks that sold for more than 1 billion KRW jumped from one in the first half of last year to eight this year. Of these, five were by overseas artists. Considering that last year’s highest auctioned work was Lee Ufan’s “Dialogue” at 1.6 billion KRW, this year’s performance was largely determined by whether ultra-high-priced overseas blue-chip works were successfully traded.

Only a few auction houses benefited disproportionately. Seoul Auction’s total auction sales surged by 196.3%, from 21.03 billion KRW to 62.33 billion KRW. K Auction's figure also rose by 53.4%, from 25.21 billion KRW to 38.68 billion KRW. In contrast, A Auction saw a drop of 37.9%, and Rise Art’s total fell by 20.2%.

In the first half of 2026, the total auction sales amount of seven major domestic auction houses increased by 99.05% compared to the previous year, but the number of items offered decreased by 11.03%. Two artworks worth around 10 billion KRW each by Yoshitomo Nara and Yayoi Kusama accounted for 23.0% of the total auction sales, intensifying the concentration on ultra-high-priced works.

Online Shrinks, Offline High-End Auctions Dominate

Transaction channels also diverged. Offline auction sales soared from 48.38 billion KRW to 104.81 billion KRW—an increase of more than twice. Meanwhile, online auction sales decreased from 7.29 billion KRW to 5.99 billion KRW. The number of online auctions dropped from 78 to 56, and the number of online auctioned works also decreased by 14.65%, from 6,629 to 5,658.

This suggests that the market rebound has not spread to mid- and low-priced works or to new collectors. While high-priced works were traded in major offline auctions, online auctions—supporting the broader market base—contracted further. As a result, while transaction size grew, participation range narrowed.

A similar phenomenon was observed in overseas auction markets. Combined first-half auction sales at Christie’s, Sotheby’s, and Phillips totaled 6.77 billion USD, up 70.1% year-on-year. However, the number of sold works increased by only 4.5%. Single-collection auctions generated 2.17 billion USD, representing 32% of the three auction houses’ total sales. Both in Korea and abroad, capital flowed toward a select few ultra-high-value assets rather than across the market at large.

On April 16, 2025, participants admire artworks at the '2025 Hwarang Art Fair VIP Preview' held at COEX in Gangnam-gu, Seoul. Photo by Jinhyung Kang

Galleries Also Moving From 'Expansion' to 'Selection'

This concentration in the auction market is also apparent in the primary market. The report noted that galleries, too, are prioritizing core artists and key locations rather than expanding new operations. In June, Pace Gallery announced plans for organizational restructuring, cutting about 50 affiliated artists and about 50 staff members.

Withdrawals and suspensions by galleries both domestic and international have continued. According to the report, at least four galleries—including the U.S.-based VSF, Germany-based König, Peres Projects Seoul, and One and J Gallery—have decided to suspend, withdraw, or close operations. A survey of 70 gatekeepers conducted by KAAAI indicated that outlooks for the primary market were 35.7% negative, 20.0% positive, and 44.3% neutral.

The report also highlighted the recent first-instance ruling regarding art-tech investment fraud as a variable in market trust. In July 2026, the head of Seojeong Art Center was sentenced to 18 years in prison on charges related to art investment fraud. The report warned that if unverified prices become the standard for investment, trust in the art market could be damaged.

A researcher at the institute stated, "The impressive numbers reflect a selective focus on certified international blue-chip works and top-tier auction houses, rather than a broad-based market recovery. As shown in the recent first-instance ruling on the art-tech fraud case, it’s crucial at this point to establish a system that distinguishes between seller-stated prices and those verified by the actual market."

This content was produced with the assistance of AI translation services.